Good morning! It’s Monday, November 11, and that is The Morning Shift, your every day roundup of the highest automotive headlines from around the globe, in a single place. Listed below are the vital tales you could know.
1st Gear: Tesla Inventory Hits $1 Trillion Market Cap
Tesla’s market cap has surpassed $1 trillion following former President Donald Trump’s election victory on November 5. It rallied 29 % following Tuesday’s outcome. That ought to put the “Is Tesla a meme inventory” debate to relaxation as soon as and for all, even when CEO Elon Musk is slated to play an enormous half in Trump’s second administration.
Following November 5’s shut, Tesla had a market cap of $807.1 billion. On the time of penning this story, that quantity is now $1.01 trillion. Earlier than final week’s large rally, shares of the carmaker have been up about 1 % on the yr. That quantity is now 30 % yr thus far. From CNBC:
Tesla rejoins a rising membership of tech names that are actually price greater than $1 trillion, together with Nvidia , Apple , Microsoft , Alphabet , Amazon and Meta (although all however Meta are price greater than $2 trillion). Tesla’s market cap first crossed the $1 trillion mark in October 2021.
Wedbush Securities analyst Dan Ives has mentioned {that a} potential Trump administration may spell much less regulation for Tesla and different firms.
“Tesla has the size and scope that’s unmatched within the EV trade and this dynamic may give Musk and Tesla a transparent aggressive benefit in a non-EV subsidy atmosphere, coupled by possible larger China tariffs that might proceed to push away cheaper Chinese language EV gamers (BYD, Nio, and so forth.) from flooding the U.S. market over the approaching years,” Ives wrote in a word to purchasers this week.
Trump has mentioned beforehand he could minimize the federal $7,500 electrical car tax credit score. These credit have helped to drive gross sales of Tesla autos traditionally.
Tesla posted income of $25.18 billion and a internet revenue of $2.17 billion within the third quarter of 2024. Through the earnings name, Musk mentioned his “finest guess” was that “car development” would hit 20 or 30 % in 2025. He pointed to “decrease price autos” and the “creation of autonomy” as driving forces behind his prediction. I assume we’ll see.
Tesla has been promising, and creating, driverless car know-how for greater than a decade. Its key U.S. competitor, Alphabet-owned Waymo, has pulled forward and is already working business robotaxi companies in a number of main cities.
On the third-quarter name, Musk mentioned he would use his sway with a Trump-Vance administration to ascertain a “federal approval course of for autonomous autos.” At the moment, approvals occur on the state degree, which the CEO sees as a regulatory hurdle Tesla might want to overcome as soon as it lastly provides greater than partially automated driving methods.
No matter, man. They received. This shit sucks. Allow them to understand Elon is simply making shit up on their very own.
2nd Gear: Price Slicing Coming To Lucid, Rivian
Each electrical car startups Lucid and Rivian make some actually good vehicles, however they’ve obtained a bit little bit of a money burn drawback. Each misplaced cash on each automotive they delivered within the third quarter, which isn’t nice.
Rivian reported a $1.1 billion internet loss in Q3 on $874 million in income after gross sales fell. Lucid’s gross sales really improved within the quarter, however its internet loss widened to $950 million on $200 million in income. From Automotive Information:
The EV makers are anticipated to burn via billions of {dollars} as they develop extra inexpensive midsize crossovers for 2026 that can decrease the entry worth into the manufacturers from round $70,000 with delivery for present fashions to round $50,000 for the crossovers which can be nonetheless about two years from manufacturing.
Analysts say Rivian and Lucid must rein in prices if they’re ever to change into worthwhile. As well as, they warn that the reelection of former President Donald Trump on Nov. 5 may carry decreased help for electric-vehicle incentives that go to the automakers and to the customers who purchase their merchandise.
“We anticipate that the transition to electrical autos within the U.S. will probably be hindered beneath Trump’s administration,” GlobalData mentioned in a Nov. 6 analysis word. Trump’s regulatory modifications “may result in a 15-20 % lower out there share of battery electrical autos within the U.S. by 2030 in comparison with our base forecast.”
Financial institution of America downgraded Rivian inventory to a impartial score from purchase after the third-quarter earnings report, citing the potential lack of regulatory credit from EV gross sales beneath a Trump administration. EV makers can promote these credit to trade counterparts who don’t meet emissions requirements.
“We’re making actual significant progress by way of reducing our invoice of supplies, reducing our price construction,” mentioned Rivian CEO RJ Scaringe on the third-quarter earnings name Nov. 7. “Similarly, we’re additionally driving effectivity into how we’re working the plant. So the hours per unit that we construct is coming down.”
In a bit of fine information, Rivian expects to realize a gross revenue within the fourth quarter of this yr. That’ll partially come via the sale of regulatory credit for about $275 million, in line with the corporate, however hey, each little bit helps.
Within the third quarter, Rivian’s gross loss per car delivered rose to $39,130 in contrast with $30,648 within the year-earlier interval, it mentioned. These numbers will enhance within the fourth quarter on account of Rivian’s cost-cutting applications for its R1T pickup and R1S crossover, Scaringe mentioned on the earnings name.
Rivian mentioned it had money and money equivalents of $5.4 billion on the finish of the quarter. It additionally has a $5 billion funding from Volkswagen Group as a part of a three way partnership that’s anticipated to shut earlier than the tip of the yr, Scaringe mentioned.
Third-quarter deliveries for the Irvine, Calif., automaker fell 36 % to 10,018 autos, and output dropped 19 % to 13,157, the corporate mentioned. Rivian is affected by a elements scarcity that began within the third quarter that has restricted electric-motor manufacturing, it mentioned.
Lucid has its personal world of points to cope with as nicely.
Lucid reported a 91 % enhance in third-quarter gross sales to a file 2,781 for its sole mannequin, the Air sedan. The Newark, Calif., automaker’s manufacturing elevated 16 % to 1,805 autos.
Much like Rivian, Lucid is targeted on price reducing to enhance its funds after elevating $4 billion this yr to help its loss-making operations. These embody the beginning of manufacturing of its first crossover, the Gravity, this yr and the event of the midsize mannequin that’s scheduled for manufacturing in late 2026.
Lucid vastly expanded its Casa Grande, Ariz., manufacturing facility this yr for manufacturing of the Gravity and introduced extra of its manufacturing in-house to scale back prices, CEO Peter Rawlinson mentioned on the Nov. 7 convention name.
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In its third-quarter earnings report, Lucid mentioned money and money equivalents stood at $1.89 billion, in contrast with $1.35 billion within the previous three-month interval. In October, Lucid introduced it was elevating $1.75 billion extra via a public providing and a personal placement of shares.
Fortunately for each nascent automakers, they each say they’ve obtained sufficient financing to fund tasks into 2026. That’s a very good factor, as a result of Lucid and Rivian make a few of the most compelling merchandise in the marketplace proper now.
third Gear: Jaguar EV Idea Coming Subsequent Month
Jaguar is about to unveil a brand new idea car in Miami on December 2 that’ll give a glimpse of the primary new mannequin beneath JLR’s technique to reposition the British model as a luxurious EV maker.
It’s going to be proven the night time earlier than Miami’s Artwork Week kicks off. JLR says the primary mannequin to be launched on its new JEA Jaguar-specific electrical platform will probably be a “four-door GT,” so I suppose we must always look out of some kind of quick sedan. That’s excellent news, as a result of Jaguar is superb at quick, handsome sedans. The automaker additionally mentioned will probably be a “copy of nothing.” From Automotive Information:
Jaguar will now launch the mannequin in late summer season 2026, CEO Adrian Mardell mentioned on an earnings name on Nov. 8. Final yr JLR mentioned the Jaguar EV could be launched in 2025.
Mardell informed journalists that the corporate was being cautious on timing because it monitored demand for electrical vehicles. “BEV adoption is wanting a bit bit weaker and extra inconsistent than would have been 12 months in the past,” he mentioned.
The U.S. and the U.Ok. will probably be key markets for the automotive, Mardell added. The U.Ok. is among the best-performing international EV markets, with a share rising to 18 % within the 10 months to the tip of October.
Demand for electrical vehicles within the U.S. has been thrown into uncertainty with the election of Donald Trump to the presidency. Trump has promised to roll again some EV incentive applications, though he counts Tesla CEO Elon Musk as an vital ally.
JLR is monitoring the uptake of EVs because it plans the timing of the second and potential third fashions on the JEA platform in addition to these vehicles on the corporate’s new Electrified Modular Structure, or EMA, platform for smaller Vary Rover fashions.
No matter Jaguar goes to do sooner or later, it higher be rattling good. It’s a type of manufacturers I’ve at all times liked, and it’s a goddamn disgrace to see it within the form its in as we speak.
4th Gear: Cadillac XT4 Manufacturing Ends In January
The gas-powered Cadillac XT4 has an official expiration date as GM says the compact crossover will finish manufacturing in January of 2025 on the firm’s Fairfax Meeting plant in Kansas. It coincides with the tip of the Chevy Malibu’s manufacturing on the identical plant. Don’t fret, Fairfax lovers. GM is investing $391 million on the plant to make the brand new model of the Chevy Bolt in late 2025. From the Detroit Information:
“Normal Motors is assured in our robust ICE and EV portfolio and can lean into development alternatives guided by buyer demand,” GM spokesperson Kevin Kelly mentioned in an announcement. “There is no such thing as a change to our beforehand introduced $391 million funding and staffing plans at Fairfax Meeting. This facility will proceed to play a essential function in GM’s future with the brand new Chevrolet Bolt EV. “
GM plans to carry a shift again to Fairfax in October 2025 forward of the beginning of Bolt manufacturing, in line with a plant memo despatched to workers that was obtained by The Detroit Information. The automaker is anticipating a return of the second manufacturing shift within the first quarter of 2026, in line with that memo.
GM will probably be quickly shedding 686 United Auto Staff-represented workers when Malibu manufacturing ends and about 759 extra in January when the XT4 ends, in line with the memo.
GM initially deliberate to finish XT4 manufacturing in January after which resume it in mid-2025 however pulled again on these plans. Cadillac has three extra EVs coming: the Escalade IQ, the Optiq SUV and the Vistiq three-row SUV. It already has Cadillac Lyriq SUV and the hand-built Celestiq, an ultra-luxury automotive.
“Cadillac will provide our most complete portfolio ever in 2025 with twelve fashions and a mixture of ICE and EVs,” Kelly mentioned. “The present lineup meets the necessity of virtually each luxurious buyer with an providing in most main segments. In simply over a yr, Cadillac has launched six new merchandise which can assist us preserve our momentum.”
XT4 manufacturing began within the fall of 2018 for the 2019 mannequin yr. By Q3 of 2024, Cadillac bought 15,688 of the little crossovers. That’s down 12 % from final yr. So lengthy, little man.
